Industry failing to make itself heard

It’s set to be a busy couple of weeks for chancellor of the Exchequer George Osborne.

Next Wednesday 21 March, he will make his much anticipated Budget 2012 statement to parliament, as well as dealing with the inevitable fall-out and criticism that this brings. (Biba won’t be happy if he announces a rise in insurance premium tax, as outlined in a pre-Budget letter to the chancellor from chief executive Eric Galbraith.)

However, attention was taken away from the impending Budget announcement this morning after a panel debate of senior global (re)insurance executives at the annual MultaQa conference in Qatar revealed that the chancellor has other concerns about the industry. According to Hiscox Bermuda chief executive Charles Dupplin, Osborne has made it clear to the ABI that the general insurance industry is failing to make its voice heard in government about how it has successfully steered its way through the recent financial troubles in the global economy.

The chancellor makes a valid point, but what will the industry do about it?”

This statement will leave many asking once again why the industry isn’t doing enough to help itself. The industry regularly faces a battle to clean up its reputation, not only in government but also in the perception among consumers. The chancellor makes a valid point, but what will the industry do about it and who is to blame?

The ABI leapt out in defence of its communication efforts, but there is clearly more work to be done, otherwise Osborne would have kept his mouth shut. With the industry still fighting for the government and regulators to understand the difference between insurers, brokers and banks, as Galbraith pointed out in his pre-Budget address, this latest criticism has to hit home.

Towergate keeps up the pace

Fresh from two recent acquisitions, Towergate today signalled that these won’t be the last with the appointment of a group mergers and acquisitions director. Dan Saulter will lead the charge, and his experience of being a deal-maker for Towergate’s acquisitive financial services arm, Towergate Financial, could see the consolidator making some hefty deals in the months ahead.